Insider Selling: Duolingo (NASDAQ:DUOL) CEO Sells 3,614 Shares of Stock

Key Points

• CEO Luis von Ahn sold 3,614 Duolingo shares at an average price of $151.91, generating approximately $549,003. The transaction was made under a pre-arranged Rule 10b5-1 plan, leaving him with 27,960 shares.
• Von Ahn had also sold 37,366 shares on September 21 and 28,292 shares on September 16, indicating multiple recent insider sales.
• Duolingo shares fell 1.2% to $145.98, while the company’s latest quarterly results exceeded expectations with $0.66 in adjusted earnings per share and $298.45 million in revenue. Analysts maintain a consensus “Hold” rating with an average price target of $124.38.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report) CEO Luis van Ahn sold 3,614 shares of the company's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $151.91, for a total transaction of $549,002.74. Following the completion of the sale, the chief executive officer directly owned 27,960 shares in the company, valued at approximately $4,247,403.60. This represents a 11.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Ahn Luis Von also recently made the following trade(s):

• On Monday, September 21st, Luis van Ahn sold 37,366 shares of Duolingo stock. The stock was sold at an average price of $150.53, for a total transaction of $5,624,703.98.
• On Wednesday, September 16th, Luis van Ahn sold 28,292 shares of Duolingo stock. The shares were sold at an average price of $150.22, for a total transaction of $4,250,024.24.

Duolingo Trading Down 1.2%

DUOL traded down $1.73 during trading on Wednesday, reaching $145.98. 1,008,797 shares of the stock traded hands, compared to its average volume of 1,893,033. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $6.83 billion, a PE ratio of 17.30, a P/E/G ratio of 1.23 and a beta of 0.89. The stock's 50-day moving average is $140.46 and its 200 day moving average is $120.23. Duolingo, Inc. has a 12 month low of $87.89 and a 12 month high of $353.00.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.60 by $0.06. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The firm had revenue of $298.45 million during the quarter, compared to the consensus estimate of $295.58 million. During the same period last year, the business posted $0.91 EPS. The business's revenue was up 18.3% compared to the same quarter last year. Equities analysts anticipate that Duolingo, Inc. will post 2.62 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE increased its holdings in shares of Duolingo by 511.2% during the first quarter. Bank of America Corp DE now owns 1,332,301 shares of the company's stock valued at $131,325,000 after acquiring an additional 1,114,315 shares in the last quarter. State of Michigan Retirement System lifted its holdings in shares of Duolingo by 112.9% in the 1st quarter. State of Michigan Retirement System now owns 1,193,307 shares of the company's stock worth $117,624,000 after purchasing an additional 632,807 shares in the last quarter. Norges Bank acquired a new stake in Duolingo in the 4th quarter valued at $86,159,000. Amundi grew its position in Duolingo by 1,351.7% in the 1st quarter. Amundi now owns 449,068 shares of the company's stock valued at $44,265,000 after purchasing an additional 418,134 shares during the period. Finally, Renaissance Technologies LLC increased its stake in Duolingo by 91.3% during the 1st quarter. Renaissance Technologies LLC now owns 603,806 shares of the company's stock valued at $59,517,000 after purchasing an additional 288,252 shares in the last quarter. 91.59% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Argus reiterated a "hold" rating and issued a $146.00 target price on shares of Duolingo in a report on Tuesday, August 25th. Compass Point initiated coverage on shares of Duolingo in a research report on Tuesday, August 18th. They set a "buy" rating for the company. Jefferies Financial Group lifted their price objective on shares of Duolingo from $95.00 to $125.00 and gave the company a "hold" rating in a research note on Tuesday, July 14th. KeyCorp upgraded shares of Duolingo from a "hold" rating to an "overweight" rating in a research report on Tuesday, August 18th. Finally, Wells Fargo & Company started coverage on shares of Duolingo in a research note on Tuesday, August 18th. They set an "overweight" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Duolingo has a consensus rating of "Hold" and an average price target of $124.38.

Duolingo Company Profile

Duolingo, Inc develops digital learning products designed to make education accessible through mobile devices and the web. Its primary product is the Duolingo language-learning platform, which offers courses in numerous languages through interactive, game-like lessons, practice exercises and personalized learning features.

The company also provides the Duolingo English Test, an online English-proficiency assessment used by educational institutions and other organizations. In addition, Duolingo has expanded beyond language learning with products such as Duolingo Math and Duolingo Music, while offering premium subscription features through plans including Super Duolingo and Duolingo Max.

Duolingo serves users internationally, with its applications and online services available across a broad range of geographies.

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